Allowed

Bank of India v. Sh. Gurmukh Singh alias gorkha and Others

DRT26 Feb 2026OA/1012/2025

Case brief

AI extract

What is this about?

This Recovery Tribunal allowed the applicant bank's original application for recovery of a debt. The court decreed the defendants liable to jointly and severally pay the outstanding principal sum with simple interest at 8% p.a., permitting recovery through sale of mortgaged assets.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 70,09,654.24 plus simple interest at 8% p.a. from filing date; Recovery via sale of mortgaged的个人资产 available.

Bank of India versus Sh. Gurmukh Singh alias gorkha and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1012/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2025

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DATE OF DECISION: 26.02.2026

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Bank of India, a body corporate and a nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970, with its H.О. at Bank of India, Star House, C- 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and amongst others a branch at Village Mandaur, Tehsil Nabha, District Patiala Punjab through Sh. Ajit Singh Dadwal, Chief Manager, Principal Officer and General Attorney at Zonal Office Ludhiana, District Ludhiana, Punjab.

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……..Applicant

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Versus

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Sh. Gurmukh Singh alias Gorkha S/o Sh. Kartar Singh, R/o Village Agol, Tehsil Nabha, District Patiala.

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Sh. Karnail Singh S/o Sh. Kartar Singh, R/o Agol, Tehsil Nabha, District Patiala.

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Sh. Gurdeep Singh S/o Sh. Gurdev Singh, R/o village Kishangarh, Tehsil Nabha, District Patiala.

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….……Defendants

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Advocates:

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Argued by Sh. Gaurav Kamra, Advocate proxy for Sh. Rajeev Kumar Pasricha, Advocate for Applicant

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Defendants already ex-parte vide order dated 09.01.2026.

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for recovery of Rs.70,09,654.24 (Rupees Seventy Lacs Nine Thousand Six Hundred Fifty Four & Paise Twenty Four Only). The Original Application has been filed through Sh. Ajit Singh Dadwal, Chief Manager, of the applicant, who is competent to institute the Original

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OA/1012/2025 BANK OF INDIA VS. GURMUKH SINGH ALIAS GORKHA AND OTHERS

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Application vide Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 approached the applicant for grant of KCC Limit of Rs.30.00 Lacs vide loan application dated 22.07.2014, which is Annexure A2 to this OA. Defendant nos. 2 and 3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.30.00 Lacs vide sanction letter dated 28.07.2014, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. Land measuring 53Bighe-14Biswa Situated in Village Agol, Tehsil Nabha, District Patiala, Punjab vide mortgaged deed bearing vasika no. 1545 dated 30.07.2014, along with its translation, which is Annexure A10 to this OA.

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Documents executed: DP Note, Hypothecation cum loan Agreement, Letter of Declaration Undertaking & Authority, Declaration obtained from borrower, Agreement, Deed of Guarantee executed by Defended no. 2 & 3, all dated 04.08.2014, which are Annexures A4 to A9 to this OA; Acknowledgments of Debt & Securities, dated 15.06.2016, 17.05.2019, 24.09.2021 & 10.09.2024, which are Annexures 11 to A14 to this OA; legal notice dated 13.05.2025, along with postal receipt, which is Annexure A15 to this OA and Statement of account, which is Annexure A16 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.70,09,654.24, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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OA/1012/2025 BANK OF INDIA VS. GURMUKH SINGH ALIAS GORKHA AND OTHERS

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 09.01.2026.

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In support of the OA, affidavit of Sh. Ajit Singh Dadwal, Chief Manager, Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.70,09,654.24 (Rupees Seventy Lacs Nine Thousand Six Hundred Fifty Four & Paise Twenty Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.50%p.a. with 2% penal interest with half yearly rests from 11.05.2025 till the realization. The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this

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OA/1012/2025 BANK OF INDIA VS. GURMUKH SINGH ALIAS GORKHA AND OTHERS

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Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.70,09,654.24 (Rupees Seventy Lacs Nine Thousand Six Hundred Fifty Four & Paise Twenty Four Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged properties of defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.03.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 26.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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OA/1012/2025 BANK OF INDIA VS. GURMUKH SINGH ALIAS GORKHA AND OTHERS

Bank of India v. Sh. Gurmukh Singh alias gorkha and Others

Case brief

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Bank of India v. Sh. Gurmukh Singh alias gorkha and Others

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